Microsoft, Yahoo and Google are each using different technical methods to anonymize data, which is confusing for users, according to Ari Schwartz, the director of the Center for Democracy and Technology, "There isn't a consensus on the best way to anonymize logs ... We need more industry standardization and more research." Marc Rotenberg, who heads the Electronic Privacy Information Center, says Yahoo may not even deserve faint praise for this move, since Yahoo is simply deleting the last octet of an IP address (e.g. turning your computer's internet street address from 69.2.120.11 to 69.2.120.xx, something that is not very difficult to reverse).
Full Article at Wired